QUALCOMM INC

57.78 +0.79 (+1.37%) Buy

QCOM continues to mint money for it's investors

13 min read

QUALCOMM INC delivered good returns today. It grew by +1.37% to close at 57.78. During the last week it grew by +0.1% and saw a maximum drawdown of -1.88% before bouncing back.

[Themes containing QCOM]

Buy-and-Hold investors in QCOM experienced a maximum drawdown of -27.69% over the last three months. It returned -21.98% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +12.92%.

Trend

QCOM has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, QCOM underperformed the SP500 index on 49% days. Which indicates that on days QCOM underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months QCOM was mostly loss making and delivered on average -0.38% per day. It's best return during this period (of +3.04%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -8.16%) was on Thursday, 8 Nov, 2018. There was initially a bearish trend during this period which started on 3 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -12.98% losses to investors. This was followed by a bullish trend that started on 28 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +6.29% to investors.

On monthly basis, QCOM delivered losses in more months over the last year, than profits. QCOM delivered profits less regularly than SP500 index. QCOM was also a more risky investment than SP500 index as it's worst month in the last year, Mar 2018, returned -14.75% compared to -7.75% returned by SP500 index in Dec 2018. QCOM had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both QCOM and SP500 index significantly outperform during months when quarterly/annual results are announced.

Too many people spend money they earned..to buy things they don't want..to impress people that they don't like.
-- Will Rogers

QCOM is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in QCOM's volatility from 20 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that QCOM has significant positive skewness in it's return distribution. This indicates that investors can expect QCOM to recover from drawdowns quickly. Which makes QCOM a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in QCOM derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than QCOM. Therefore, SP500 must receive a lower allocation than QCOM in your portfolio. QCOM usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in QCOM), two large cap instruments that deserve special mention are CSCO and AMZN. They have significantly outperformed the overall market.

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